Allergan Reports Fourth Quarter 2011 Operating Results
Board of Directors Declares Fourth Quarter Dividend
(IRVINE, Calif., February 2, 2012) - Allergan, Inc. (NYSE: AGN) today announced operating results for the quarter ended December 31, 2011. Allergan also announced that its Board of Directors has declared a fourth quarter dividend of $0.05 per share, payable on March 16, 2012 to stockholders of record on February 24, 2012.
Operating Results Attributable to Stockholders
For the quarter ended December 31, 2011:
Allergan reported $0.90 diluted earnings per share attributable to stockholders compared to $0.85 diluted earnings per share attributable to stockholders for the fourth quarter of 2010.
Allergan reported $1.00 non-GAAP diluted earnings per share attributable to stockholders compared to $0.88 non-GAAP diluted earnings per share attributable to stockholders for the fourth quarter of 2010, a 13.6 percent increase.
For the quarter ended December 31, 2011:
Allergan reported $1,382.8 million total product net sales. Total product net sales increased 7.2 percent compared to total product net sales in the fourth quarter of 2010. On a constant currency basis, total product net sales increased 8.2 percent compared to total product net sales in the fourth quarter of 2010.
Total specialty pharmaceuticals net sales increased 8.9 percent, or 10.1 percent on a constant currency basis, compared to total specialty pharmaceuticals net sales in the fourth quarter of 2010.
Total medical devices net sales decreased 1.0 percent, or 0.4 percent on a constant currency basis, compared to total medical devices net sales in the fourth quarter of 2010.
"We are very pleased with our fourth quarter and full year growth of sales and profits, as well as the significant regulatory approvals received in 2010 and 2011," said David E.I. Pyott, Allergan's Chairman of the Board, President and Chief Executive Officer. "In 2012, we look forward to building on the momentum gained from the regulatory approvals, and increased investment in R&D to further strengthen our pipeline."
Based on internal information and assumptions, full year 2011 therapeutic sales accounted for approximately 51% of total BOTOX® (onabotulinumtoxinA) sales and increased approximately 12% compared to 2010. Full year 2011 aesthetic sales accounted for approximately 49% of total BOTOX® sales and increased approximately 12% compared to 2010.
Product and Pipeline Update
During the fourth quarter of 2011:
Allergan entered into an agreement with Family Health, its distributor in Russia, to establish direct operations for its medical aesthetics and neurosciences businesses beginning in the first quarter of 2012.
On November 14, 2011, Allergan announced that Health Canada approved BOTOX® (onabotulinumtoxinA) as a prophylactic treatment for headaches in adult patients with Chronic Migraine who suffer from headaches 15 days or more per month, lasting four hours a day or longer. On December 21, 2011, Allergan received approval from Health Canada for the use of BOTOX® as a treatment of urinary incontinence due to neurogenic detrusor overactivity resulting from neurogenic bladder associated with multiple sclerosis or subcervical spinal cord injury in adults who had an inadequate response to or are intolerant of anticholinergic medications.
Following the end of the fourth quarter of 2011:
On January 18, 2012, Senju Pharmaceutical Co., Ltd received approval from the Japanese Ministry of Health, Labour and Welfare for AIPHAGANTM P Ophthalmic Solution 0.1% for the reduction of intraocular pressure in patients with ocular hypertension and/or glaucoma. Senju possesses the rights to develop and market AIPHAGANTM P within Japan.
For the full year of 2012, Allergan expects:
Total product net sales between $5,650 million and $5,850 million.
Total specialty pharmaceuticals net sales between $4,710 million and $4,870 million.
Total medical devices net sales between $940 million and $980 million.
ALPHAGAN® franchise product net sales between $410 million and $430 million.
LUMIGAN® franchise product net sales between $640 million and $670 million.
RESTASIS® product net sales between $740 million and $770 million.
BOTOX® product net sales between $1,750 million and $1,800 million.
LATISSE® product net sales at approximately $100 million.
Breast aesthetics product net sales between $360 million and $380 million.
Obesity intervention product net sales at approximately $170 million.
Facial aesthetics product net sales between $410 million and $430 million.
Non-GAAP cost of sales to product net sales ratio at approximately 14%.
Non-GAAP other revenue at approximately $90 million.
Non-GAAP selling, general and administrative expenses to product net sales ratio at approximately 39%.
Non-GAAP research and development expenses to product net sales ratio at approximately 16%.
Non-GAAP amortization of acquired intangible assets at approximately $25 million. This expectation excludes the amortization of certain acquired intangible assets associated with business combinations, asset purchases and product licenses.
Non-GAAP diluted earnings per share attributable to stockholders between $4.13 and $4.19.
Diluted shares outstanding at approximately 308 million.
Effective tax rate on non-GAAP earnings at approximately 28%.
For the first quarter of 2012, Allergan expects:
Total product net sales between $1,340 million and $1,390 million.
Non-GAAP diluted earnings per share attributable to stockholders between $0.84 and $0.86.
In this press release, Allergan reports certain historical and expected non-GAAP results, including earnings attributable to Allergan, Inc., non-GAAP basic and diluted earnings per share attributable to stockholders as well as non-GAAP other revenues, non-GAAP cost of sales, non-GAAP selling, general and administrative expenses, non-GAAP research and development expenses, non-GAAP amortization of acquired intangible assets, non-GAAP legal settlement, non-GAAP impairment of intangible assets and related costs, non-GAAP restructuring charges, non-GAAP interest expense, non-GAAP other, net, non-GAAP earnings before income taxes, non-GAAP provision for income taxes, non-GAAP net earnings and non-GAAP net sales reported in constant currency. Non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measure in the financial tables of this press release and the accompanying footnotes. The information that accompanies the financial tables of this press release also includes an explanation of why Allergan uses these non-GAAP financial measures, certain limitations associated with the use of these non-GAAP financial measures, the manner in which Allergan management compensates for those limitations, and the reasons why Allergan management believes that these non-GAAP financial measures provide useful information to investors.
This press release contains forward-looking statements, including but not limited to the statements by Mr. Pyott and other statements regarding product development, market potential, expected growth and regulatory approvals as well as Allergan's earnings per share, product net sales, revenue forecasts and any other statements that refer to Allergan's expected, estimated or anticipated future results. Because forecasts are inherently estimates that cannot be made with precision, Allergan's performance at times differs materially from its estimates and targets, and Allergan often does not know what the actual results will be until after the end of the applicable reporting period. Therefore, Allergan will not report or comment on its progress during a current quarter except through public announcement. Any statement made by others with respect to progress during a current quarter cannot be attributed to Allergan.
All forward-looking statements in this press release reflect Allergan's current analysis of existing trends and information and represent Allergan's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses, including, among other things, the following: changing competitive, market and regulatory conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms, including government pricing, tax and reimbursement policies; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the results of any pending or future litigation, investigations or claims; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Allergan's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, U.S. and international economic conditions, including higher unemployment, financial hardship, consumer confidence and debt levels, taxation, changes in interest and currency exchange rates, international relations, capital and credit availability, the status of financial markets and institutions, as well as the general impact of continued economic volatility, can materially affect Allergan's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan expressly disclaims any intent or obligation to update these forward-looking statements except as required to do so by law.
Additional information concerning the above-referenced risk factors and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the U.S. Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Allergan's 2010 Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Copies of Allergan's press releases and additional information about Allergan are available at www.allergan.com or you can contact the Allergan Investor Relations Department by calling 714-246-4636.
About Allergan, Inc.
Allergan is a multi-specialty health care company established more than 60 years ago with a commitment to uncover the best of science and develop and deliver innovative and meaningful treatments to help people reach their life's potential. Today, we have approximately 10,000 highly dedicated and talented employees, global marketing and sales capabilities with a presence in more than 100 countries, a rich and ever-evolving portfolio of pharmaceuticals, biologics, medical devices and over-the-counter consumer products, and state-of-the-art resources in R&D, manufacturing and safety surveillance that help millions of patients see more clearly, move more freely and express themselves more fully. From our beginnings as an eye care company to our focus today on several medical specialties, including eye care, neurosciences, medical aesthetics, medical dermatology, breast aesthetics, obesity intervention and urologics, Allergan is proud to celebrate more than 60 years of medical advances and proud to support the patients and physicians who rely on our products and the employees and communities in which we live and work.
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